PeerStreet Alternatives: Top Real Estate Crowdfunding Platforms

Crowdfunded real estate has been a popular investment trend for the past decade, as individual investors can directly invest in commercial and residential properties with fractional ownership. However, no asset class is risk-free, and real estate platforms fail periodically.

PeerStreet is the latest casualty of rising interest rates and changing market conditions. Unfortunately, the platform declared Chapter 11 bankruptcy in June 2023 and has paused new offerings.

Here are several PeerStreet alternatives to consider if you wish to earn passive income from real estate.

Table of Contents
  1. What was PeerStreet?
  2. Best PeerStreet Alternatives
    1. 1. Fundrise
    2. 2. Arrived
  3. 3. RealtyMogul
    1. 4. YieldStreet
    2. 5. EquityMultiple
    3. 6. AcreTrader
    4. 7. CrowdStreet
    5. 8. HoneyBricks
  4. Final Thoughts

What was PeerStreet?

PeerStreet offered the opportunity to invest in real estate loans for single-family homes across the United States. These loans were sourced from a network of lending partners, and the platform had a first-lien position.

The average investment term was 12-36 months with a $1,000 investment minimum.

During the investment term, the borrower would make improvements or prepare it to become a rental property. Investors would be repaid with monthly interest payments. As this was debt-based investing instead of equity-based, income projections didn’t include property appreciation by selling the home to another buyer.

PeerStreet also hosted Pocket accounts, an alternative to high-yield savings accounts. Investors could earn 4% annual interest with a one-month or three-month term. These accounts are not FDIC-insured, and withdrawals were halted as the company prepared for bankruptcy.

Single-family homes can be a profitable investment idea. However, rapidly rising interest rates paired with drops in mortgage demand and venture capital funding caused PeerStreet to stop new offerings earlier in 2023.

Initial bankruptcy proceedings indicated approximately 57% of the outstanding loans were non-performing, indicating operational flaws which have been known to impact alternative investments.

While PeerStreet’s bankruptcy isn’t a complete shock, it’s an excellent reminder for investors to practice risk management and spread out their assets. This platform was one of the more-respected real estate crowdfunding sites as its investment model did many things correctly, such as holding real estate debt which carries less risk, and it was only open to accredited investors.

If you had investments at PeerStreet, those were separate from the platform but the failure of the platform does create some management headaches that you’ll have to contend with.

Best PeerStreet Alternatives

The following real estate crowdfunding platforms offer exposure to commercial and multifamily properties with debt or equity deal structures. The investment minimums and investor requirements vary, but we’ll compare the similarities and differences to PeerStreet.

1. Fundrise

Fundrise is one of the largest real estate investing services that lets you pursue various strategies. The minimum investment starts at $10, and the platform is open to accredited and non-accredited investors.

According to Fundrise, there were more than 1.9 million investors at the end of Q1 2023. The platform’s total portfolio value exceeds $7 billion and consists of nearly 300 projects across the United States, including:

  • Multifamily
  • Industrial
  • Single-family rentals

Most investors will purchase shares in managed portfolios that provide exposure to multiple properties and real estate markets rather than individual properties. Additional opportunities are available to high net worth investors.

Fundrise also offers private credit and technology offerings to eligible investors. You can schedule one-time or recurring investments.

In addition, users can enroll in Fundrise Pro for $10/month or $99 yearly. Premium Members also get access to exclusive real estate investment data.

You can purchase income-producing assets by investing in debt repayments for predictable interest income. You can also pursue value-add and equity-structured deals (opportunistic funds) if you have more risk tolerance.

It’s possible to redeem your shares quarterly, although an early redemption penalty applies during the first five years.

Similarities to PeerStreet

  • Opportunity for dividend income
  • Invests in single-family properties
  • Exclusive offerings for accredited investors

Differences from PeerStreet

  • Open to unaccredited investors
  • Portfolios have multiple properties
  • Multi-year investment horizon

Why Choose Fundrise

Fundrise is attractive as a PeerStreet alternative because of its $10 minimum investment and because they allow you to take advantage of multiple investment strategies, including multi-tenant portfolios. And you don’t need to wait for new offerings to invest.

High net worth investors can receive hands-on service to build a personalized portfolio. Regarding single-family rentals, Fundrise partners with developers so you invest in multiple homes in the same subdivision instead of solo properties. Learn more in our Fundrise review.

Learn More About Fundrise

2. Arrived

Arrived offers exposure to vacation rentals and single-family properties, and you can start by investing as little as $100. Accredited and non-accredited investors have access to individual offerings.

Investors can commit funds to new listings during the funding period. Each listing includes a property summary along with information about the area. You can also see the property address, which is handy if you live nearby and want to inspect the area for yourself. For instance, one listing is 20 minutes from the author’s house in a subdivision under construction.

The anticipated holding period varies by property but is usually 5-7 years for long-term rentals and 5-15 for vacation rentals. Any free cash flow is distributed as dividends during the investment window. Early redemptions are not possible at this time.

Unlike other platforms, Arrived doesn’t offer managed portfolios. As a result, you must be comfortable investing in single projects and holding the positions for several years.

Arrived began offering homes to investors in late 2022. As of July 2023, there are over 200 properties funded from over 344,000 registered users.

Our Arrived review goes into more detail about how the platform works.

Similarities to PeerStreet

  • Invest in single-family homes
  • Offers individual projects instead of curated portfolios
  • Low minimum investment ($100)

Differences from PeerStreet

  • Multi-year holding period with no liquidity
  • Offers vacation rental investments
  • Open to unaccredited investors

Why Choose Arrived

Consider Arrived as a solid PeerStreet alternative if you want to invest directly in long-term rentals and vacation rentals with a long-term commitment. You can receive a portion of the tenant income, and the $100 investment minimum makes it easy to diversify.

Learn More About Arrived Homes

3. RealtyMogul

RealtyMogul offers two REITs open to all investors and individual placements for accredited investors.

Both REITs have a $5,000 minimum investment but pursue different investment strategies:

  • Growth REIT: Holds multifamily apartments and makes quarterly distributions.
  • Income REIT: Receive monthly cash distributions from a portfolio of multifamily, industrial, and retail holdings.

Accredited investors have exclusive access to individual properties with an investment minimum from $25,000 to $50,000. The average holding period is 3-7 years. Most offerings are multifamily or retail complexes, giving you the additional stability of having several tenants pay rent at any given time.

Our RealtyMogul review dives deeper into the investment process.

Similarities to PeerStreet

  • Individual offerings for accredited investors
  • Can invest in residential properties
  • Debt-structured deals are available

Differences from PeerStreet

  • Offers two REITs
  • The higher minimum investment for private placements ($25,000+)
  • Unaccredited investors can join.

Why Choose RealtyMogul

Consider RealtyMogul as a good PeerStreet alternative if you want access to REITs and single offerings on the same platform. You may also like getting exposure to multi-tenant real estate, which can be less volatile than single-family housing.

Learn More About RealtyMogul

4. YieldStreet

YieldStreet is an alternative investment marketplace offering accredited investors access to various asset classes, including real estate, artwork, and business loans.

The real estate offerings can be for individual properties or a REIT. Most investment terms are 2-3 years with a $15,000 minimum investment.

While most offerings are for accredited investors only, non-accredited investors can get indirect access through the Yieldstreet Prism Fund. The fund holds positions in the platform’s various offerings but has a high minimum investment of $10,000.

Our Yieldstreet review looks closely at recent offerings.

Similarities to PeerStreet

  • Accredited investors only
  • Can invest in individual offerings
  • Managed short-term fund for recurring income (Prism Fund)

Differences from PeerStreet

  • Multi-year holding period
  • Higher minimum investments
  • Multiple asset classes

Why Choose Yieldstreet

If you you want access to various alternative investments, not just real estate, then this is probably the best PeerStreet alternative for you. The holding period is shorter than most crowdfunded offerings.

Learn More About YieldStreet

5. EquityMultiple

EquityMultiple provides accredited investors with short-term, intermediate, and long-term real estate offerings:

  • Keep: Six-month Alpine Notes with a competitive yield to compete with no-penalty CDs
  • Earn: Senior debt or preferred equity offerings with a term of 36 months or less
  • Grow: Growth-focused value-add and opportunistic offerings

The minimum investment varies by offering and starts at $5,000 for Alpine Notes and $10,000 for individual projects.

Investors have access to a dedicated investor relations team and other benefits mentioned in our EquityMultiple review.

Similarities to PeerStreet

  • Individual offerings
  • Short-term and intermediate holding periods
  • Accredited investors only

Differences from PeerStreet

  • Higher minimum investment (starts at $5,000)
  • Offers long-term equity structure deals
  • Commercial real estate investments

Why Choose EquityMultiple

EquityMultiple lets you pursue short-term investments and longer-dated projects. You can also invest in commercial real estate versus single-family mortgages.

Learn More About EquityMultiple

6. AcreTrader

AcreTrader approaches crowdfunded real estate differently, as you can invest in farmland and timberland instead of dwellings. The service is designed for accredited investors, and the minimum investment varies by offering.

In most cases, the target hold period is 3-5 years, although several successful exits have been closer to one or two years. Tenant farmers pay annual rent, and you can earn additional returns from property value appreciation.

Our AcreTrader review helps you learn how farmland investing works.

Similarities to PeerStreet

  • Accredited investors only
  • Earn dividend income
  • Individual offerings

Differences from PeerStreet

  • Raw farmland and timberland only
  • Multi-year holding period
  • No short-term interest-bearing account

Why Choose AcreTrader

You may like AcreTrader as a PeerStreet alternative if you want to expand your existing real estate portfolio beyond commercial and residential properties and start investing in farmland. These properties can also use less leverage than PeerStreet offerings making it easier for the tenant to afford the annual rent agreement.

Learn More About AcreTrader

7. CrowdStreet

CrowdStreet lets accredited investors invest in individual multifamily and commercial properties, such as apartments, student housing, and hotels. Growth-focused REITs are also available. The minimum investment is $25,000 per offering with an average holding period of 2 to 6 years.

Privately managed accounts holding multiple assets are available with a minimum $250,000 balance. This investment option lets you obtain a personalized portfolio.

Similarities to PeerStreet

  • Accredited investors only
  • Individual offerings
  • Invests in markets across the US

Differences from PeerStreet

  • Offers managed funds too
  • Commercial and multifamily offerings
  • Requires multi-year commitment

Why Choose CrowdStreet

This investment platform makes for a good alternative to PeerStreet because it provides many individual offerings and managed funds for various types of commercial real estate. You can enjoy earning investment income from multifamily apartments too. Our CrowdStreet review lists additional investor benefits.

Learn More About CrowdStreet

8. HoneyBricks

HoneyBricks uses tokenized real estate technology to help you invest in commercial offerings, which can be more efficient than traditional crowdfunded real estate investing.

The minimum investment starts at $5,000 but varies by project. Further, having no investor fees can optimize your potential returns. All offerings are for accredited investors only. You can invest in multifamily apartments located across the country.

This platform is still relatively young (it launched in 2022), but it has supported over $136 million in deals by more than 3,000 investors.

Our HoneyBricks review highlights this platform’s unique features.

Similarities to PeerStreet

  • Individual offerings
  • Low minimum investment
  • Accredited investors only

Differences from PeerStreet

  • Multifamily properties only
  • No investor fees
  • Longer holding period

Why Choose HoneyBricks

Investors can choose from growth or income-focused offerings with multifamily apartments. There are no investor fees which makes the potential returns more transparent.

Learn More About HoneyBricks

Final Thoughts

If you’re looking for a suitable alternative to PeerStreet, trying one or several of the investing platforms mentioned above can give you access to a wider variety of investments.

Some will be income-focused, like PeerStreet, and others will be growth-focused but provide the relative stability of having multiple families or commercial tenants.

If you’re an unaccredited investor, several of these platforms are also open and have flexible minimums and redemption options to earn a competitive yield along with safe” investments.

Whatever you do, remember that all of these investing platforms carry a level of risk, and you should never invest more than you can afford to lose. Having a well-diversified portfolio remains your best bet.

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About Josh Patoka

After graduating in $50k with student loans in May 2008 from Virginia Military Institute with a B.A. International Studies and Political Science with a minor in Spanish (he studied abroad in Sevilla, Spain for 3 months), Josh decided to sell his soul for seven years by working in the transportation industry to get out of debt ASAP and focus on doing something else with a better work-life balance.

He is a father of three and has been writing about (almost) everything personal finance since 2015. You can also find him at his own blog Money Buffalo where he shares his personal experience of becoming debt-free (twice) and taking a 50%+ pay cut when he changed careers.

Today, Josh relishes the flexibility of being self-employed and debt-free and encourages others to pursue their dreams. Josh enjoys spending his free time reading books and spending time with his wife and three children.

Opinions expressed here are the author's alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.

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